Credit Card News Lloyds TSB May Appeal Overseas Credit Card Purchase Ruling 17076430
Lloyds TSB may appeal overseas credit card purchase ruling
24 March 2006
Lord Justice Waller ruled that there should be no difference in treatment between purchases made in the UK, and those made overseas.
He stated: “We have reached the conclusion that connected lender liability under Section 75 of the Act attaches to all transactions entered into using credit cards issued under consumer credit agreements regulated by the Consumer Credit Act 1974, whether they are entered into in the UK or elsewhere.”
The ruling means that purchases of between £100 and £30,000 would be protected, and is likely to cost credit card companies millions of pounds.
During the proceedings, the credit card industry argued that making businesses provide such protections would force them to “become the insurer, for no premium, of the performance of most of the hotels in the world”.
However, after the case, Lloyds TSB indicated that it might yet take the case to the House of Lords.
In a statement, the bank declared: “The ruling means that a credit card customer can, for example, make a purchase abroad for £30,000, put just £1 of the purchase price on their credit card and then claim against the credit card company for millions of pounds in consequential losses.”
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